United Airlines Holdings Inc. said Wednesday that it expects the coronavirus pandemic to continue to weigh on travel demand this year as the airline focuses on reconstruction.
United reported a net loss of $ 1.9 billion for the fourth quarter, compared to a profit of $ 641 million in the same period last year. In total, United lost $ 7.1 billion in 2020.
While the outlook for the next few months remains bleak for airlines, United said it has managed to address the immediate challenges and outlined its plan to surpass its profit margins from 2019 to 2023 through a combination of return travel revenue and cost reduction.
“Aggressive management of the challenges of 2020 has depended on our innovation and rapid decision-making. But the truth is that Covid-19 has changed United Airlines forever, “said Scott Kirby, CEO of United Airlines.
United’s losses come almost a week after Delta Air Lines Inc. said it lost $ 12 billion last year, also its weakest annual performance. The disastrous results of the two airlines reflect the damage the pandemic has caused to the airlines. Carriers, including Southwest Airlines Co. and American Airlines Group Inc. will report fourth-quarter results next week.